Fourth Quarter 2018 Investor Presentation
Focused on the Pacific Alliance
Attractive growth opportunity for Scotiabank
Pacific Alliance
。 Portfolio of high quality growth markets for Scotiabank
○ 223 million people with median age of 29
O
Largest trading partner is the United States (64% of exports)
О Largest sector is manufacturing (64% of exports)
。 Trade bloc with free trade agreements to liberalize commerce and improve integration
• Supports trade flows with Asia in order to compete with Brazil and Argentina which
participate in Mercosur
。 Accounts for 36% of Latin America's GDP, comparable to Brazil
。 Canada has bilateral free-trade agreements with all four Pacific Alliance countries and it
has initiated an application for Associate Membership in the Alliance
• Pacific Alliance is an Attractive Long-Term Opportunity
o Region is the 6th largest goods exporter in the world
。 Trade bloc with governments supporting growth/significant infrastructure spending
。 Solid GDP growth rates relative to peers
。 Considerable room to increase banking penetration (avg. domestic credit/GDP of 66%)
。 Fast-growing middle-class with increasing financial demands
。 Favourable demographics for banking needs
。 Relatively stable legal, tax, and regulatory infrastructure in place
o Central bankers have earned credibility and banking system is well-capitalized
Scotiabank®
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